[SMM Analysis] Fundamental imbalances show a trend of widening, and the price of non-oriented silicon steel will decline slightly after the Labour Day holiday

Price Trends of Non-Oriented Silicon Steel

Shanghai B50A800: RMB 5,050-5,100/mt

Guangzhou B50A800: RMB 4,800-4,900/mt

Wuhan 50WW800: RMB 4,800-4,900/mt

Shanghai Market:

This week, the price of cold-rolled non-oriented silicon steel in Shanghai remained stable, with mediocre market transactions. HRC futures exhibited a fluctuating trend, and the impact of tariff news gradually emerged. Before the Labour Day holiday, state-owned enterprises maintained firm quotations, while some private steel mills also stabilized their prices after lowering them. Downstream end-user motor users adopted a cautious mindset, with conservative purchasing strategies, mainly purchasing as needed. Looking ahead, tariff news will continue to exert influence in the short term, having a significant negative impact on the direct export of non-oriented silicon steel and related downstream industries. Some downstream leading enterprises experienced a sharp decline in order intake, with insufficient purchase willingness. In summary, market transactions remained mediocre before the Labour Day holiday, and there was a trend of widening fundamental imbalances. It is expected that the price of non-oriented silicon steel in Shanghai will decline slightly after the holiday.

Wuhan Market:

This week, the spot price of cold-rolled non-oriented silicon steel in Wuhan remained in the doldrums, with average market transaction performance. The ferrous metals series futures market maintained a fluctuating trend, with a mediocre trading atmosphere and stable trade quotations. Currently, downstream end-users have weak purchase willingness, and traders focus on actively selling goods, with room for price negotiation in actual transactions. However, inventory levels in the Wuhan market are low, with some traders even lacking low-grade spot resources. Looking ahead, some traders hold a pessimistic view of the market outlook, with a business strategy focused on maintaining low inventory levels. In summary, it is expected that the price of non-oriented silicon steel in Wuhan will be generally stable with slight fall after the holiday.

Guangzhou Market:

This week, the price of cold-rolled non-oriented silicon steel in Guangzhou remained in the doldrums, with average market transaction activity. Affected by market rumors, the futures market experienced sideways movement, and the spot price of steel continued to weaken. Traders generally held a pessimistic mindset, with an overall trading atmosphere that was slightly below average. Currently, there is limited circulation of Baowu's medium and low-grade spot resources in the market, with prices stabilizing after a slight decline. Looking ahead, influenced by tariff information, the ferrous metals series futures market will continue to fluctuate, having a bearish impact on the export of downstream industries such as home appliances and motors. Therefore, downstream industries will adopt a purchasing-as-needed strategy, mainly adopting a wait-and-see approach. In summary, it is expected that the price of non-oriented silicon steel in Guangzhou will undergo narrow adjustments after the holiday.